Now Reading: Wealth managers quit legacy firms to start own ventures
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Wealth managers quit legacy firms to start own ventures
India's ultra-high net worth individuals (net worth above Rs 25 crore) reached 13,600 in 2024, and wealth management assets under management are projected to nearly double to $2.3 trillion by FY29, reports…
The Story in Brief
India's ultra-high net worth individuals (net worth above Rs 25 crore) reached 13,600 in 2024, and wealth management assets under management are projected to nearly double to $2.3 trillion by FY29, reports Livemint. This booming market is driving a wave of senior wealth managers to leave legacy firms and start their own ventures, with at least six such firms launched in recent years. Examples include TriGen Wealth (from LGT Wealth), Veriqus Partners, Dezerv, and Centricity Wealth. The trigger is often declining incentives: managers with large client books see limited upside in salary and bonus compared to what they could earn independently. However, these new firms face high costs, difficulty retaining relationship managers, and pressure from private equity investors to scale profitably.
The Indian Opinion
The narrative of senior wealth managers striking out on their own is often painted as a triumphant entrepreneurial exodus from stodgy giants. But the reality is more complicated. The big firms’ loss of incentive is real, but the new ventures face punishing costs: poaching risk, high RM salaries, and the pressure to scale quickly for private equity backers. The real test will be whether these firms can achieve break-even without triggering a costly talent war that eats their margins.
Source: livemint.com
This story was synthesised by AI from the source linked above.
